Beautiful Virgin Islands

Tuesday, Jun 24, 2025

Biden pick to run unemployment program oversaw $600M in losses to Nigerian fraud scheme

Biden pick to run unemployment program oversaw $600M in losses to Nigerian fraud scheme

LeVine’s transition into a White House role comes amid an unemployment fraud scandal at her department that cost the state over $600 million
Suzi LeVine, the departing head of Washington state’s Employment Security Department (ESD), reportedly will run a federal agency office that assists states in processing unemployment claims.

But LeVine’s transition into the Biden administration role comes amid an unemployment fraud scandal at her state-level department that cost Washington state over $600 million.

The fraudulent unemployment claims were believed to be linked to a well-organized Nigerian fraud ring using identities stolen in prior data breaches, such as the massive 2017 Equifax breach. More than 122,000 fraudulent claims made in the state siphoned off the cash.

The Secret Service announced that Washington state was the main prey of the scandal, though other states were also targeted. Separately, California has its own unemployment scandal amounting to over $11 billion, while another $20 billion in possible losses is still being investigated.

LeVine's forthcoming role will be interim assistant secretary of the Employment and Training Administration, part of the Labor Department, five people familiar with the transition told Bloomberg Law. Levine and her husband Eric gave $400,000 to the Biden campaign and other Democratic causes in 2019 and 2020, according to federal campaign records.

The new job would put her at the front of President Biden’s economic recovery plan, after the economy shrunk by more than 10 million jobs since the start of the pandemic. With an annual budget of roughly $9 billion — about three-quarters of overall Labor Department dollars, the ETA will have a key role in patching up the scarce labor market.

It’s not clear if LeVine will ever drop the "interim" part of her new title, but to transition into the permanent role she must be confirmed by the Senate, and questions about her record in Olympia could arise.

A recent Washington state audit faulted the ESD under LeVine for failing to fix a software vulnerability that contributed to last spring’s massive unemployment fraud, according to the Seattle Times.

LeVine, announcing the staggering blow to the state’s finances in May, said that officials were working to recover as much of the money as possible. She said the state had taken steps to prevent new fraudulent claims, but did not detail the steps.

"We do have definitive proof that the countermeasures we have put in place are working," LeVine said. "We have successfully prevented hundreds of millions of additional dollars from going out to these criminals and prevented thousands of fraudulent claims from being filed."

Washington state was able to recover $357 million as a result of the state’s collaboration with federal law enforcement and financial institutions across the country, leaving a net loss of $243 million. Efforts are ongoing to recover more of the money.

ESD officials acknowledged that because of the elimination of a so-called waiting week between when a claim is filed and the time the benefit was paid, the agency wasn’t always able to verify a claim with employers before the payment was made. The change was instituted by Gov. Jay Inslee.

State auditor Pat McCarthy rebuked LeVine, a fellow Democrat, for delays in supplying the auditor’s office with information about the fraud.
Newsletter

Related Articles

Beautiful Virgin Islands
0:00
0:00
Close
Airlines Evaluate Flight Cancellations Amid Escalating US-Iran Tensions
Starmer Invites Innovators to Join Government Talent Scheme
UK Economy’s Strong Opening Quarter Shows Signs of Cooling
Harrods Seeks Court Order to Secure Al Fayed Estate for Victims
BA and Singapore Airlines Cancel Dubai Flights Amid Middle East Tensions
Trump Faces Backlash from MAGA Base Over Iran Strikes
Meta Bets $14 B on Alexandr Wang to Drive AI Ambitions
WATCH: Israeli forces show the aftermath of a massive airstrike at Iran's Isfahan nuclear site
FedEx Founder Fred Smith, ‘Heart and Soul’ of the Company, Dies at 80
Chinese Factories Shift Away from U.S. Amid Trump‑Era Tariffs
Pimco Seizes Opportunity in Japan’s Dislocated Bond Market
Labubu Doll Drives Pop Mart to Status as China’s Most Valuable Toy Maker
Global Coal Demand Defies Paris Accord Goals
We have new information and breaking details to share about what is shaping up to be a historic air campaign tonight
Six Massive Bombs Dropped on Fordow; Trump: 'A Historic Moment for the U.S., Israel, and the World'
Fordow: Deeply Buried Iranian Enrichment Site in U.S.–Israel Crosshairs
United States Conducts Precision Strikes on Iran’s Nuclear Sites
US strikes Iran nuclear sites, Trump says
Pakistan to nominate Trump for Nobel Peace Prize.
BBC Demands Perplexity AI Immediately Stop Using Its Content
Telegram Founder: I Will Leave My Fortune to Over 100 of My Children
Political Turmoil Resurfaces in Belgium Amid Economic Concerns
Fed policymakers divided on timing of interest rate cuts
Trump signals imminent agreement with Harvard University
Inheritance tax referendum alarms Swiss billionaire community
Japan cancels bilateral security meeting amid US defence demands
AI skeptic Emily Bender warns that ‘the emperor has no clothes’
Israel Confirms Assassination of Quds Force Commander in Tehran
16 Billion Login Credentials Leaked in Unprecedented Cybersecurity Breach
Senate hearing on who was 'really running' Biden White House kicks off
Iranian Military Officers Reportedly Seek Contact with Reza Pahlavi, Signal Intent to Defect
FBI and Senate Investigate Allegations of Chinese Plot to Influence the 2020 Election in Biden’s Favor Using Fake U.S. Driver’s Licenses
Vietnam Emerges as Luxury Yacht Destination for Ultra‑Rich
Plans to Sell Dutch Embassy in Bangkok Face Local Opposition
China's Iranian Oil Imports Face Disruption Amid Escalating Middle East Tensions
Trump's $5 Million 'Trump Card' Visa Program Draws Nearly 70,000 Applicants
DGCA Finds No Major Safety Concerns in Air India's Boeing 787 Fleet
Airlines Reroute Flights Amid Expanding Middle East Conflict Zones
Elon Musk's xAI Seeks $9.3 Billion in Funding Amid AI Expansion
Trump Demands Iran's Unconditional Surrender Amid Escalating Conflict
Israeli Airstrike Targets Iranian State TV in Central Tehran
President Trump is leaving the G7 summit early and has ordered the National Security Council to the Situation Room
Taiwan Imposes Export Ban on Chips to Huawei and SMIC
Israel has just announced plans to strike Tehran again, and in response, Trump has urged people to evacuate
Netanyahu Signals Potential Regime Change in Iran
Juncker Criticizes EU Inaction on Trump Tariffs
EU Proposes Ban on New Russian Gas Contracts
Analysts Warn Iran May Resort to Unconventional Warfare
Iranian Regime Faces Existential Threat Amid Conflict
Energy Infrastructure Becomes War Zone in Middle East
×